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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: Petz who wrote (17025)11/1/2000 1:59:24 AM
From: Jim McMannisRead Replies (1) | Respond to of 275872
 
John,
Last I heard, Norm Fosback was building an 18,500 sq ft automated house. I believe he is still the editor in chief of several newsletters (Income and safety, Market Logic (maybe no longer published) , Mutual Fund Forecaster (I know this is still published) and New Issues) and the "Mutual Fund magazine".
His first book of note was "Stock Market Logic" (1976 I think) which laid the ground rules for seasonality trading. You are correct, it was geared around the last days of the month and the first 3 days of the next month. This was expanded to include even more exposure around holidays.
His newsletter, mutual fund forecaster (used to get it as well as the others) took the seasonality thing to the mutual fund level. He even had a fund group that would switch you in and out automatically.
One of Norms big claims to fame is that the seasonality method avoided the 1987 crash. Which it did.
Clearly by being out of the market most of the time, risk is lessened.
I have a copy of the original book, "stock market logic" and some of the old newsletters so if you wish I can look up the exact method again.

Jim



To: Petz who wrote (17025)11/1/2000 7:03:19 AM
From: hmalyRespond to of 275872
 
John Re.. << niceguy, another startling automatic trading program is to buy at the end of the month and sell a few days later. <<<

Yes, I have a book called, the master day trader. In there they point out that the best continuous 5 day period to be invested in the market is the last, first to fourth day of the month, and the best single day is the second day of the month. They say it is because many funds get their biggest cash inflows near the end or the beginning of the month.



To: Petz who wrote (17025)11/1/2000 9:25:13 AM
From: niceguy767Respond to of 275872
 
John:

Thanks for the post...That theory looks like it's being put to test, and supported, as we speak...Perhaps if AMD breaks $23 and gets to $24-3/4 this week, I'll cash out with the hope of geting back in around $23.50...but then again, my perception of AMD risk is that it's much more likely to get away from me on the upside!!! (I still can't rationalize AMD 1 cent under $40...and, based on fundamentals, that's my worst case scenario)...



To: Petz who wrote (17025)11/1/2000 9:38:37 AM
From: niceguy767Respond to of 275872
 
John:

Oh, oh...Might not close at $23 or better this week if today's opening is any indicator of next couple of days!!!

Have to say though that just too many good things happening at AMD for the lid to stay on its price much longer...even with this AM's negative rumour!!!